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The test of independence * Canada - Not all truckers can qualify as independent contractors
ONT,Canada -Truck News -26 Sept 2008: -- The use of an "independent contractor" can appear to be a hassle-free alternative to hiring an employee... There's no need to worry about deductions for such things as income tax, Employment Insurance (EI), Canada Pension Plan (CPP), Quebec Pension Plan (QPP) or Workplace Safety and Insurance Board (WSIB) contributions. Such deductions become the responsibility of the independent contractor, who also has the opportunity to claim business-related expenses. Nor do those who contract the service need to remit their share of CPP/QPP contributions or EI premiums to Revenue Canada and le ministere du Revenu du Quebec.Yet the process of convincing a driver to set up a so-called "single-driver service" as a means to avoid such charges can be costly – particularly since government agencies may not recognize the independent status, and could come looking for unpaid taxes, premiums and other financial penalties... "It's mainly the ma and pops," says Global Driver Services vice-president George Iacono, referring to smaller fleets that attempt the practice. "The for-hire sector is so competitive. The companies doing it are offering low-ball rates."... A variety of deductions can account to 15% to 20% of a driver's salary, and some of the savings are passed on to shippers to help secure contracts, he says... But if a government agency determines the trucker should be defined as an "employee," unpaid deductions will need to be paid...
Labels: independent contractors
posted by Unknown @ 3:35 PM
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